Submitting an earnest money deposit (EMD) is one of the most important milestones in the home closing process. When a buyer’s offer on a home is accepted, they make an earnest money deposit to show they are serious (earnest) about purchasing the property, so it’s crucial that deposits are completed on time.
Typically, an EMD is about one to five percent of the purchase price and is later applied to the cost of the down payment if the purchase goes through to settlement.